FAQs

• What is Rent to Buy?

  Rent to Buy is a housing scheme designed to help people rent a property at a reduced rate while saving up to eventually buy it. You start by renting for a period, typically one year, at a lower cost, and during that time you save money to build up your deposit. At the end of the rental period, you have the option to buy the home you've been living in.

• Who is Rent to Buy for?

  Rent to Buy is for people who want to own a home but may not have the full deposit saved or are not ready for a mortgage yet.

  It’s ideal for first-time buyers, those with a steady income but limited savings, and people who want to work towards buying a home while living in it.

• How does Rent to Buy work?

  The scheme works in three main steps:

  1. Rent at a Reduced Rate: You start by renting your desired property at a lower-than-market rent for a fixed period, typically 12 months.
  2. Save for Your Deposit: During this rental period, you can save towards the deposit you will need to buy the home.
  3. Purchase the Home: After the rental period, you can use your savings to put down a deposit and apply for a mortgage to purchase the home.

• Do I need a deposit to start?

  No, you do not need an upfront deposit to start renting with the Rent to Buy scheme. Instead, you focus on saving while renting at a reduced rate.

• How much do I need to save?

  Typically, you need to save about 10% of the property value during the rental period. The reduced rent makes it easier to put money aside each month, gradually building up your deposit.

• How long can I rent before I need to buy?

  The typical rental period is 12 months. After that, you have the opportunity to buy the home you’ve been renting.

  Some schemes may offer flexibility, but generally, 12 months is the target time to transition into ownership.

• What happens if I decide not to buy after the rental period?

  If you decide not to buy, you can either continue renting on new terms, depending on the property owner’s conditions, or move out.

  There is no obligation to buy if your circumstances change, but you will not recover rent payments towards ownership.

• How much will I pay in rent?

  Rent is typically set at a lower-than-market rate, which makes it affordable and allows you to save for a deposit. The exact amount varies depending on the property and location, but it is designed to be more manageable than traditional renting.

• What are the benefits of Rent to Buy?

  Rent to Buy allows you to live in your future home today, giving you time to save for a deposit while renting.

  It also offers lower rent costs, no upfront deposit, and provides a clear path to ownership, especially for first-time buyers.

• Can I make changes to the property while renting?

  Since you are initially renting the property, making significant changes like renovations will usually require permission from Esteem Homes. Small changes or decorations are often allowed, but it’s best to check beforehand.

• Do I need to pass a credit check to join Rent to Buy?

  Yes, there is typically a credit check involved, but the requirements might be more flexible compared to a traditional mortgage.

  The idea is to ensure that you can afford the rent and will be able to save towards buying.

• Is Rent to Buy available for new-build homes only?

  Rent to Buy is often available for new-build properties, as these homes are commonly reserved for such schemes.

  However, some existing homes may also be part of a Rent to Buy program, depending on the provider.

• What support does Esteem Homes provide during the process?

  Esteem Homes offers personalised support through every step of the process.

  This includes help with financial planning, mortgage application guidance, and general assistance to make sure you’re prepared to become a homeowner at the end of your rental period.

• Can I buy the home before the 12-month rental period ends?

  In most cases, you need to complete the 12-month rental period before purchasing, as this time is intended to help you save and prepare financially.

  However, you can discuss this option with Esteem Homes to understand any possible flexibility.

• How do I apply for Rent to Buy?

  To apply, you need to complete our simple quiz to check if you qualify.

  If you’re eligible, one of Esteem Homes' team members will reach out to guide you through the process and get you started.

• What happens if my financial situation changes during the rental period?

  If your financial situation changes, Esteem Homes will work with you to find a solution.

  This could include adjusting your savings plan or exploring other options. The aim is to keep you on track towards ownership, but there are no penalties if circumstances change beyond your control.

• Do I need to have a steady income to qualify?

  Yes, having a steady income is important to qualify for Rent to Buy, as you will need to afford the rent and also save for the eventual deposit.

  This scheme is designed to help those who are financially stable but may not have large savings.

• How is Rent to Buy different from Shared Ownership?

  Rent to Buy allows you to rent and save towards purchasing the entire property, while Shared Ownership involves buying a portion of the property and paying rent on the rest.

  Rent to Buy gives you more time to save for a deposit while enjoying lower rent.

• Can I get help with my mortgage application when the time comes to buy?

  Yes, Esteem Homes provides mortgage application support when you’re ready to buy.

  This includes advice on lenders, preparing necessary paperwork, and helping you understand your options, so the transition from renting to owning is smooth.

• What if I need more time beyond the 12 months?

  If you need more time, you can discuss extending the rental period with Esteem Homes.

  While the goal is to transition to ownership after 12 months, we understand that individual circumstances vary, and we aim to accommodate our renters where possible.